The global car industry has been rioted by the new Duconian tariff regime of Donald Trump that automobile drivers will expect to raise US vehicle prices, reduce US car production and US vehicle manufacturers up to $ 110 billion.
The US president’s announcement on Wednesday evening that he would impose a 25 percent fee for imported car imports aroused a clash to understand policy details and identify potential exceptions that could facilitate the hit in the industry.
Within hours, it was made it clear that any manufacturer, including Tesla and the three American General Motors, Ford and Stellantis, will be affected. “We’re all in the same boat,” said one senior executive at a European manufacturer.
Tariffs are intended to increase the US industry, but shares in Ford and GM dropped as much as 4.4 percent and 8.2 percent respectively Thursday morning in New York.
The duo can suffer a 30 percent drop in interest and taxes this year as a result of politics, even if they raised prices and regenerated their supply chains to use more parts made in the US, according to Bernstein analyst estimates.
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Almost half of the vehicles sold in the US have been imported, while those collected in the SH.BA on average the source of nearly 60 percent of their parts from abroad.
Bernstein said politics can introduce up to $ 110 billion in annual tariff costs for car manufacturers. The tariff policy, which analysts and investors have described as “a worst case scenario”, “with heavy hands” and “devastating”, is unparalleled in its achievement and scale, the deceived industry hopes that Trump would withdraw from a escalating trade war.
The 25 percent tax will come to the top of the tariffs Trump has already announced against imports from Mexico, Canada and China. They will take effect from April 2, along with mutual taxes against US trade partners expected to be disclosed on the same day.
“Certainly possible that we can see fees for some vehicles imported from outside North America reaching 40 percent or 50 percent in total,” said Barclays Dan Levy analyst.
The tariff also applied to essential car components such as engines and transmissions while processes were in place to expand the tax to other parts if necessary, the White House said.
Barclays said a 25 percent fee will mean up to $ 9,000 at increased cost for a vehicle sold to the US
If tariffs are implemented next week, the Cox Automotive Market Research has predicted that confusion in the supply chain would lead to North America vehicle production by interrupting by mid -April, resulting in US plants to make 20,000 fewer vehicles per day, or about 30 percent less than now.
If the costs are passed on to customers and the prices of vehicles in the JBA become very expensive, car manufacturers can choose to sell more cars in other markets.
Even before Trump’s announcement, a “interval” car manufacturer who produces vehicles in Mexico, was thinking of cutting sales in the US and selling more in Central America, according to a person with knowledge of plans.
The machine is thinking “there is no way these cars sell at the US” if it increases the price by 25 percent, the person added.
Elon Musk’s Tesla would have been best positioned among US cars, with its strong manufacturing base in America, though its electric vehicles also use many foreign ingredients.
A major source of confusion over politics is about cars and parts that are in accordance with the 2020 trade agreement between the US, Mexico and Canada.
Trump previously gave a 30-day return from tasks for vehicles and ingredients that met the USMCA rules. These will be left without tariffs, but only until a process is created to implement non-era taxi taxes, according to a US government official.
“It is not clear what tariffs apply to that part. Not everything is in the executive order,” one official said in a manufacturer of European parts, mentioning the uncertainty on the parts in accordance with USMCA.
Manufacturers of parts warned that they could not adopt tariffs and were planning to exceed the costs of additional tariffs for consumers accordingly, the person added.
Among European and UK manufacturers, luxury brands like Porsche, Jaguar Land Rover and Bentley, which are popular in America, are exposed as they do not have any production skills in the US
However, many of them have more room for customers to absorb price growth. Ferrari on Thursday said she planned to raise prices for some of her models by up to 10 percent while confirming her financial objectives for this year.
Meanwhile, Germany’s BMW and Mercedes-Benz are no longer compatible with USMCA as sold-locally collected vehicles are still derived from their engines and broadcasting from Europe, according to Morningsar.
“EU and US are the largest trading partners in the world. Therefore, both parties must immediately find a transatlantic agreement that creates growth and prevents a coil of isolation and trade barriers,” BMW said in a statement.
Japanese car companies would probably be hit hard after sending almost $ 1.4 million worth $ 40 billion to the SH.BA in 2024, most of each nation after Mexico-where they are number one manufacturers.
Analysts extensively identify Mazda and Subaru as the most affected due to their high confidence in the abroad content of the MAK collected in the US, while Mitsubishi Motors do not produce in the US
Mitsubishi Motors said he was “exploring new production investment opportunities” at the top of his long -term plan to “increase investment in the US market”.
Seiji Sugiura, an analyst at the Tokai Tokyo Intelligence Laboratory, praised a $ 23 billion impact on Japan’s seven leading producers and calculated that tariffs would run Nissan and Mazda to losses, unless they received countermeasures such as pricing.
Before the last fee is announced, the new chief executive of Nissan Ivan Espinosa said the situation was “very difficult to cope as there is no clear direction”. He added that the company was designing some scenarios so that “it could be ready as soon as possible to get a clarity in what comes.”
